Netflix Stock (NASDAQ:NFLX)
Following third-quarter earnings reports, Netflix returned to growth and topped subscribers, sales, and profits forecasts. As a result, Netflix stock has risen 11.3% in after-hours trading.
Netflix (NASDAQ:NFLX) reported a net increase in customers of 2.41 million, much over the 1 million predicted by analysts. This brought the total number of the firm’s members worldwide to a record-breaking 223.09 million.
Earnings per share of $3.10 were much above the average estimate of $2.17, while revenue growth of 6% exceeded expectations.
At 6 p.m. ET, the firm will broadcast an earnings interview (led by Doug Anmuth of J.P. Morgan).
“After a hard first half, we feel we’re on a path to reaccelerate growth,” the business claims. “The secret is to maintain member satisfaction. This is why we’ve never stopped working hard to outdo the competitors in terms of daily viewers.”
With a “guidance evolution,” Netflix will no longer anticipate paid membership while anticipating faster subscriber growth in the fourth quarter (it expects net additions to come in at 4.5M, bringing total subscribers to a projection of 227.59M).
Previously, we established that “The revenue measure is becoming more important to us. This will become more critical as we expand into 2023 and include membership as just one of many income sources (like advertising and paid sharing).”
Consequently, Netflix will continue to provide forecasts for revenue, operating income, operating margin, net income, EPS, and shares outstanding – but not paid membership – beginning with its fourth-quarter report in January.
Revised at 16:14 UTC: New memberships were the primary driver of revenue growth, with an increase in average revenue per member of 1% also contributing. When adjusted for currency fluctuations, annual income increased by 13% and average membership revenue by 8%: “F/X was solely responsible for the sequential fall in sales.”
Featured Image- Megapixl @ Lightfieldstudiosprod
Author Shariq Khan 
